I just watched the season finale of Top Gear last night - and the guys were just going goofy (albeit a little ignorant) over the Demon... in the UK! So, no - it hasn't ruined the hobby to have stupidly powerful factory cars, it is expanding and driving the industry/aftermarket to keep up. There is a huge trickle down effect with technology, which is driving innovation, which is generating accessibility. Plus, there is the added benefit of benchmarks set by these new factory offerings - meaning I am going to go out of my way to knock you off your new car pedestal with my home built thing.
Personally I have been drinking the late-model performance Kool-Aid since 2002 - when I convinced a girlfriend at the time to custom order a new 6 speed Z28; since then Natasha (an upgrade over the previous GF) and I have had LSx powered cars (2002 B4C, 2007 TBSS, my wagon, and soon to be my MCSS) dating back to 2007. Hell, Natasha's 2015 Colorado has 300+hp from a 3.6L V6 and it moves out nicely with some light mods.
I remember when the only aluminum block anything you could get was a ZL1 crate motor - so exotic. Now they are everywhere. So if you are putting around with a 305/350 with smog heads, a 3/4 race cam, 1-5/8 headers, and some Cherry Bombs... well that is your choice to be stuck in the past. Because if you don't have an 11 second car these days you are driving a stone compared to factory offerings - an unfortunate reality. That being said 9 second street cars are only commonplace on the internet (largest concentration of information in one space will skew your perspective), so don't get caught up in the 1000hp race.